Andhina Dian Adhyanti
Daniella Arenander
Emir Isidan
Fernanda Schmid
Economic Environment
• 2008 recession:
• Great impact until 2010
• Reduced consumption of healthy and organic products:
• More expensive
• “Luxury goods” rather than necessities.
• Premium fruit juice market: growth of 34.64% to $346.5 million (2012)*
• Trends:
• Health Awareness
• Balanced Diet
• Organic / All-Natural
• No sugar added
• Added benefits
• 1 in 4 adult American are LOHAS (Lifestyles of Health and Sustainability)
consumers
http://www.factsfiguresfuture.com/issues/october-2012/super-premiums-have-sales-juice.html
Company
• Family-run company
• Two years in the market
• Fruit juice with fiber
• Four flavors:
• Peach Mango
• Concord Grape
• Blueberry Açaí
• Pome Blue Cram
Target Market
• Demographic:
• Age range: 25-45
• Gender: Female / Male
• Middle-upper Classes (>60k
USD year)
• Psychographic:
• Independent
• Social
• Cool & trend-setting
• Health-conscious
• Open to trying new products
• Able and willing to spend money
on healthier foods
• Practice Sports
• Work
• On the search for convenience
• Impulse Purchase
• On-the-go snacking
• Geographic:
• USA Market
• Focus:
• CA, WA, CO, NY, IL, MA, FL
• Market Size:
• US Population: 317MM
• > 60k USD/year: 37.5MM
• LOHAS (25%): 9.4MM
Consumer Personas
Liz is a 28-year-old
production assistant,
lives in Los Angeles.
Practices Pilates
2x/week. Checks on all
nutrition facts before
buying food.
Robert is a 38-year-
old chef & restaurant
owner in NY. Needs
Fiber because his diet
isn’t healthy. Likes
running in Central
Park.
Carol is a 42-year-old
mother of two
teenagers in Orange
County. Wants to keep
and shape and be an
example for her kids.
Number of Flavors Sizes Products Benefits Kcal USD
Naked
PepsiCo
16 Smoothies (14 Fruit, 2
Vegetable),
6 Juices
4 Coconut Waters
15,2
32
48
64
Juices, Smoothies &
Coconut Water
Protein,
Vitamins
420 3,99
Odwalla
Coca-
Cola
8 Juices, 29 Smoothies (4 fruit,
3 Vegetable, 10 Protein, 3 Kids,
3 Refreshment, 6 Superfood).
12
32
Juices, Smoothies &
Cereal Bar
Protein,
Vitamins
350 2,49
Bolthouse
Campbell’s
13 Juices
13 Smoothies (2 Breakfast / 4
Protein)
4 Coffee
15,2
32
Juices, Smoothies,
Coffee drinks,
Dressings, Carrots.
Protein,
Vitamins,
Fiber (2
items)
420 2,99
Evolution
Fresh
Starbucks
8 Fruit Juice,
4 Vegetable Juices,
5 Smoothies (1 Protein)
5 Hydrate
15,2
32
Juices, Smoothies,
Cereal Bar, Nuts
Protein 280 4,99
Pom
Pom
8 Juice (1 Lite), 3 Tea 15,2
32
Juices, Tea, Fresh
Fruit, Pills, Juice
Concentrate
Anti-oxidants
(natural on
fruit)
280 3,99
Juiceol
ogy
Daklen
4 Juices 15,2 Juices Fiber 180 2,99
Competition
Competition
Albertson’s (Safeway) – Camarillo, CA
Suppliers’ Power
Few suppliers
Expensive machinery
Barriers to Entry
Fast growth, good margins – very
interesting market!!!
3rd-party production & distribution
Relatively easy to copy
Establish new brand
Substitutes
Fresh pasteurized Juices / Smoothies
Other sources of fiber (whole grain bread,
granola bars, Activia)
Buyers Power
High Cost of Product Introduction
High promotional Level
Payment Dates
Rivalry
Biggest beverage
companies in the world
High level of investment
Alternative ways to conquer
market (ex: Odwalla
smaller size & price-point)
Porter’s 5 Forces
Product
Product Objective:
• Sell 2.2 million bottles in 2014.
Product Strategy:
• Develop a line of healthy premium juices with fibers.
Product Tactics:
• Launch a Green flavor
• Re-launch Grape flavor with Plum and Blackberry
• Launch family-size bottle (32oz)
• Develop new visual identity and packaging
• Increase appetite appeal
• Develop Unique Selling Proposition
Juiceology - The Original Fiber Juice
A refreshingly pure and nutritious blend of
premium juices and whole grain extracts.
• Whole grains: heart health, healthy
weight
• Only 98 calories per serving and NO
SUGAR ADDED
• ZERO fat, Cholesterol FREE, and Vegan -
Wheat gluten-free
• All grains, fibers and vitamins come
from fresh raw foods
Product
Price
Price objective:
• Achieve a contribution margin of $711.096 (32% of net sales) in 2014.
Price strategy:
• Skimming:
• Increase the price to increase brand value perception
• Differentiate from competitors (no added value from fiber)
Price Tactics:
• Increase the price from $2,99 to $3,49
• Establish $6,00 Price for 30oz bottle
• Must continue affordable and below market leader (Naked Smoothies)
• Increase promotional level (BOGO, $1OFF Coupon)
Price
Bolthouse (2,99)
Sambazon (2,99)
KonaRed (2,99)
Kombucha (2,78)
Aloe King (1,99)
Simple Orange (1,59)
Tropicana (1,69)
Evolution Fresh (4,99)
Naked (3,99)
Pom (3,99)
Juiceology (3,49)
Odwalla (2,99 – 12ox)
“Me-too”brands
Lowdifferentiation
HighValueBrands
Place
Place objectives:
• We want to be in 6 different store chains (Kroger, Walgreens, CVS
pharmacy, Safeway, Whole Foods, 7-eleven) with a target of 1644 stores.
Place strategy:
• Work with 5 different distributors (one for each chain) and 20 jobbers (only
in CA) for 7-Eleven and smaller independent stores/fitness centers.
• We are looking for mass stores (Krogers, Safeway) to generate volume and
visibility stores (Whole Foods, fitness centers) to increase brand awareness.
Place tactics:
• Pay higher sales commission than other juice brands
• Create Sales Incentives & Rewards / Recognition
• Regular meetings / trainings with distributors sales teams
• POP material: shelf talkers.
Place
Juiceology
Broker
(commissioned)
Retailer Chains
Consumers
Jobber
Independent
Retailers & 7-Eleven
Consumers
Promotion
Promotion objective:
• Create awareness through a target number of exposures of 390MM
Promotion strategy:
• Focus on publicity and Product Trial.
Promotion tactics:
• Regular press releases with nutritionist backup (product guarantee)
• Social media: viral videos, Facebook fanpage, Instagram, Twitter
• Create new brand website
• Advertisement: health & lifestyle magazine
• Product Trial: in-store, marathons, parks, fitness centers
• Coupons, Buy-1-get-1 new flavor free
Promotion
2014 J F M A M J J A S O N D
Demand
Trade Shows X X X X
Sales Incentives X X X X X
Press Releases X X X X X X X X X X X X
Viral Videos X X
Facebook / Instagram Contests X X X X X
Magazine Ads X X X
In-store Product Trial X X X X
Fitness Center Product Trial X X X X X
Parks Product Trial X X X X
Coupons X X X X X
Marathons X X X X X
BOGO X X X X
Promotion
In-Store Trial
Instagram Contest
Marathon Sampling
Breakeven Point
0
500000
1000000
1500000
2000000
2500000
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
500000
550000
600000
650000
700000
750000
800000
USD
Volume
Breakeven
Profit
Variable
Costs
Fixed
Costs
SWOT
STRENGHTS:
First movers on whole grains
Flavors developed in-house
Fast decision-taking
WEAKNESSES:
New brand: low brand awareness
New concept: Juice + Fiber difficult to
explain)
Limited resources (Money & People)
OPPORTUNITIES:
Development of new segment (Juice
with fiber)
Consumers looking for new products
Health trend on the rise
Whole grains in high demand
THREATS:
Established brands copying the fiber
concept
Smaller brands being bought by big
companies with high advertisement and
marketing budgets
Thank-you!

Juiceology P&P Presentation

  • 1.
    Andhina Dian Adhyanti DaniellaArenander Emir Isidan Fernanda Schmid
  • 2.
    Economic Environment • 2008recession: • Great impact until 2010 • Reduced consumption of healthy and organic products: • More expensive • “Luxury goods” rather than necessities. • Premium fruit juice market: growth of 34.64% to $346.5 million (2012)* • Trends: • Health Awareness • Balanced Diet • Organic / All-Natural • No sugar added • Added benefits • 1 in 4 adult American are LOHAS (Lifestyles of Health and Sustainability) consumers http://www.factsfiguresfuture.com/issues/october-2012/super-premiums-have-sales-juice.html
  • 3.
    Company • Family-run company •Two years in the market • Fruit juice with fiber • Four flavors: • Peach Mango • Concord Grape • Blueberry Açaí • Pome Blue Cram
  • 4.
    Target Market • Demographic: •Age range: 25-45 • Gender: Female / Male • Middle-upper Classes (>60k USD year) • Psychographic: • Independent • Social • Cool & trend-setting • Health-conscious • Open to trying new products • Able and willing to spend money on healthier foods • Practice Sports • Work • On the search for convenience • Impulse Purchase • On-the-go snacking • Geographic: • USA Market • Focus: • CA, WA, CO, NY, IL, MA, FL • Market Size: • US Population: 317MM • > 60k USD/year: 37.5MM • LOHAS (25%): 9.4MM
  • 5.
    Consumer Personas Liz isa 28-year-old production assistant, lives in Los Angeles. Practices Pilates 2x/week. Checks on all nutrition facts before buying food. Robert is a 38-year- old chef & restaurant owner in NY. Needs Fiber because his diet isn’t healthy. Likes running in Central Park. Carol is a 42-year-old mother of two teenagers in Orange County. Wants to keep and shape and be an example for her kids.
  • 6.
    Number of FlavorsSizes Products Benefits Kcal USD Naked PepsiCo 16 Smoothies (14 Fruit, 2 Vegetable), 6 Juices 4 Coconut Waters 15,2 32 48 64 Juices, Smoothies & Coconut Water Protein, Vitamins 420 3,99 Odwalla Coca- Cola 8 Juices, 29 Smoothies (4 fruit, 3 Vegetable, 10 Protein, 3 Kids, 3 Refreshment, 6 Superfood). 12 32 Juices, Smoothies & Cereal Bar Protein, Vitamins 350 2,49 Bolthouse Campbell’s 13 Juices 13 Smoothies (2 Breakfast / 4 Protein) 4 Coffee 15,2 32 Juices, Smoothies, Coffee drinks, Dressings, Carrots. Protein, Vitamins, Fiber (2 items) 420 2,99 Evolution Fresh Starbucks 8 Fruit Juice, 4 Vegetable Juices, 5 Smoothies (1 Protein) 5 Hydrate 15,2 32 Juices, Smoothies, Cereal Bar, Nuts Protein 280 4,99 Pom Pom 8 Juice (1 Lite), 3 Tea 15,2 32 Juices, Tea, Fresh Fruit, Pills, Juice Concentrate Anti-oxidants (natural on fruit) 280 3,99 Juiceol ogy Daklen 4 Juices 15,2 Juices Fiber 180 2,99 Competition
  • 7.
  • 8.
    Suppliers’ Power Few suppliers Expensivemachinery Barriers to Entry Fast growth, good margins – very interesting market!!! 3rd-party production & distribution Relatively easy to copy Establish new brand Substitutes Fresh pasteurized Juices / Smoothies Other sources of fiber (whole grain bread, granola bars, Activia) Buyers Power High Cost of Product Introduction High promotional Level Payment Dates Rivalry Biggest beverage companies in the world High level of investment Alternative ways to conquer market (ex: Odwalla smaller size & price-point) Porter’s 5 Forces
  • 9.
    Product Product Objective: • Sell2.2 million bottles in 2014. Product Strategy: • Develop a line of healthy premium juices with fibers. Product Tactics: • Launch a Green flavor • Re-launch Grape flavor with Plum and Blackberry • Launch family-size bottle (32oz) • Develop new visual identity and packaging • Increase appetite appeal • Develop Unique Selling Proposition
  • 10.
    Juiceology - TheOriginal Fiber Juice A refreshingly pure and nutritious blend of premium juices and whole grain extracts. • Whole grains: heart health, healthy weight • Only 98 calories per serving and NO SUGAR ADDED • ZERO fat, Cholesterol FREE, and Vegan - Wheat gluten-free • All grains, fibers and vitamins come from fresh raw foods Product
  • 11.
    Price Price objective: • Achievea contribution margin of $711.096 (32% of net sales) in 2014. Price strategy: • Skimming: • Increase the price to increase brand value perception • Differentiate from competitors (no added value from fiber) Price Tactics: • Increase the price from $2,99 to $3,49 • Establish $6,00 Price for 30oz bottle • Must continue affordable and below market leader (Naked Smoothies) • Increase promotional level (BOGO, $1OFF Coupon)
  • 12.
    Price Bolthouse (2,99) Sambazon (2,99) KonaRed(2,99) Kombucha (2,78) Aloe King (1,99) Simple Orange (1,59) Tropicana (1,69) Evolution Fresh (4,99) Naked (3,99) Pom (3,99) Juiceology (3,49) Odwalla (2,99 – 12ox) “Me-too”brands Lowdifferentiation HighValueBrands
  • 13.
    Place Place objectives: • Wewant to be in 6 different store chains (Kroger, Walgreens, CVS pharmacy, Safeway, Whole Foods, 7-eleven) with a target of 1644 stores. Place strategy: • Work with 5 different distributors (one for each chain) and 20 jobbers (only in CA) for 7-Eleven and smaller independent stores/fitness centers. • We are looking for mass stores (Krogers, Safeway) to generate volume and visibility stores (Whole Foods, fitness centers) to increase brand awareness. Place tactics: • Pay higher sales commission than other juice brands • Create Sales Incentives & Rewards / Recognition • Regular meetings / trainings with distributors sales teams • POP material: shelf talkers.
  • 14.
  • 15.
    Promotion Promotion objective: • Createawareness through a target number of exposures of 390MM Promotion strategy: • Focus on publicity and Product Trial. Promotion tactics: • Regular press releases with nutritionist backup (product guarantee) • Social media: viral videos, Facebook fanpage, Instagram, Twitter • Create new brand website • Advertisement: health & lifestyle magazine • Product Trial: in-store, marathons, parks, fitness centers • Coupons, Buy-1-get-1 new flavor free
  • 16.
    Promotion 2014 J FM A M J J A S O N D Demand Trade Shows X X X X Sales Incentives X X X X X Press Releases X X X X X X X X X X X X Viral Videos X X Facebook / Instagram Contests X X X X X Magazine Ads X X X In-store Product Trial X X X X Fitness Center Product Trial X X X X X Parks Product Trial X X X X Coupons X X X X X Marathons X X X X X BOGO X X X X
  • 17.
  • 18.
  • 19.
    SWOT STRENGHTS: First movers onwhole grains Flavors developed in-house Fast decision-taking WEAKNESSES: New brand: low brand awareness New concept: Juice + Fiber difficult to explain) Limited resources (Money & People) OPPORTUNITIES: Development of new segment (Juice with fiber) Consumers looking for new products Health trend on the rise Whole grains in high demand THREATS: Established brands copying the fiber concept Smaller brands being bought by big companies with high advertisement and marketing budgets
  • 20.